State Senator Derrick Shepherd pled guilty to a single charge of conspiracy to commit money laundering and agreed to cooperate with the investigation in federal court Friday.

The federal government has agreed not to pursue other charges against Shepherd as part of the deal. Sentencing has been set for January 21. Shepherd faces a maximum of 20 years in prison, though that is likely to be lessened if he cooperates with investigators.

"If we decide it's substantial enough, we then go to the sentencing court and notify the sentencing court that the cooperation has been substantial and if that happens, we then ask for in some cases, leniency," said U.S. Attorney Jim Letten.

Shepherd also announced his resignation from the State Senate.

The lawmaker, who had been defiant in the face of the charges, appeared contrite in court Friday.

"I plead guilty because I did wrong and I apologize for my actions," he told the judge.

Shepherd showed up in federal court prior to the hearing, accompanied by his mother and his attorneys. His lone words to reporters seeking a comment as he entered court were, "Trust God."

The federal case accused Shepherd of helping Gwendolyn Joseph Moyo launder $141,000 in checks written to her companies whose accounts had been frozen by the insurance department.  

According to the U.S. Attorney’s Office, the Shepherd admitted that he laundered illegal proceeds for co-defendant Gwendolyn Moyo, who received premiums for bogus construction bonds and turned over those premiums to Shepherd, who then deposited the premiums into his law firm bank accounts. Shepherd then remitted a portion of the money back to Moyo and to other criminal associates of Moyo, while keeping a portion of the premiums himself.  Shepherd also admitted that he created false bills and time records to disguise his actual role in the laundering scheme.  Moyo is scheduled to go to trial on Tuesday, October 14, 2008 and is presumed innocent unless and until proven guilty beyond a reasonable doubt. 

Shepherd was released on bond until his sentencing.